Term
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Definition
1. income distribution (gini)
2. horizontal equity (equals treated equally)
3. Vertical equity (those w/ higher ability to pay, pay more) |
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Term
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Definition
1. Revenue Impact
2. Equity
3. Efficiency |
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Term
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Definition
1. Absolute Incidence
2. Differential Incidence
3. Balanced Budget Incidence |
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Term
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Definition
-when new tax applied, who pays?
-doesn't talk about how revenue is used |
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Term
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Definition
-most useful
-suppose one tax system is replaced with differential tax system that gives same amount of revenue |
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Term
| Balanced Budget Incidence |
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Definition
| -impose a new tax and say what you're gonna do with the revenue |
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Term
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Definition
| All income minus exclusions |
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Term
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Definition
AGI minus deductions+exemptions
-Only 37% of GNP makes it here |
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Term
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Definition
-After tax tables are applied
-After credits are applied |
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Term
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Definition
Total accretion of wealth in a given time period
-Intent: to avoid distortions in reporting income
-advocates that all income should be taxed in the same way, independent of source of income
-Concept forgets you can't tax leisure, which creates distortions |
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Term
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Definition
| Income used to be averaged over time. Averaging income is only allowed for farmers and fisherman |
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Term
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Definition
| when inflation causes you to move into a higher tax bracket |
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Term
| Income tax v. Consumption Tax |
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Definition
-timing
-tax when gets $ vs spends $ |
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Term
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Definition
1. nonrefundable 2. refundable -tax credits are not dependent on tax bracket
A subtraction from tax liability (as opposed to a subtraction from taxable income) |
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Term
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Definition
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Term
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Definition
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Term
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Definition
| Tax markets in inverse proportion to supply and demand elasticities |
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Term
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Definition
-Haig-Simon
-But, no progressivity
-Solution: look at income base, but subtract savings |
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Term
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Definition
-some don't appear in tax forms
-political reasons for hiding them |
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Term
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Definition
1. Interest on state+local bonds
-not taxed or accounted for
-generates $ for state+local govs
2. No tax on imputed rent
3. Fringe benefits
4. Transfers from Government |
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Term
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Definition
items that never appear -i.e. imputed rent, interest in local bonds
A loss of tax revenue because some item is excluded from the tax base |
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Term
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Definition
gains that result from the sale of assets other than those held in the ordinary conduct of business -tax paid when item is sold
An increase in the value of an asset |
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Term
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Definition
| High capital gains tax encourages investors to hold their assets rather than sell |
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Term
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Definition
| tax capital gains ever year |
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Term
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Definition
waiting to tax until sold
-How do you find a yearly value of a painting? |
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Term
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Definition
-Short term: less than 12 mos (treated like income)
-Long term: more than 12 mos (max rate of 15 percent) |
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Term
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Definition
1. Rental/Involved in managing property
2. Passive--not actively managing property or activity
3. Portfolio (stocks and bonds)
4. Active (work) |
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Term
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Definition
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Term
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Definition
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Term
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Definition
-Old Age Survivor Insurance
-used for retirement benefits+loss of a parent
-social security usually not taxed |
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Term
| Incentives of Homeownership |
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Definition
1. No tax on imputed rent 2. Exclusion of capital gains on household 3. deductibility of property taxes 4. home mortgage interest deduction
5. Interest on home equity loan is deductible |
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Term
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Definition
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Term
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Definition
-substitution effect says labor decreases
-income effect says labor increases |
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Term
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Definition
| whether you enter labor force |
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Term
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Definition
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Term
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Definition
-Zero Bracket Amount
-sum of 1 exemption and standard deduction |
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Term
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Definition
-if your taxable income is less than ZEBRA amount, you don't have to file income taxes (less than $9,500)
-you can itemize deductions if they are less than $5,800
-biggest itemized deduction: mortgage interest deduction |
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Term
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Definition
-loss that is a sudden and unexpected event
-10% floor
-7.5% for medical expenses |
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